< Reveal sidebar

Nearly half a million jobs globally may be lost in the aviation industry in 2020. (Photo: AirlineGeeks | Katie Bailey)

The Brazilian Regional Workhorse: SkyWest Secures Financing For Six Additional Embraer E175

Embraer announced on October 10 that the Brazilian Development Bank (BNDES) approved financing for the export of six Embraer E175 commercial jets to the north American regional carrier SkyWest Airlines, Inc. (SkyWest). With the new financing facility, the number of aircraft acquired or to be acquired by SkyWest with BNDES financing totals 200 units

The financing, in the order of R$670 million -US 128,450 million-, will be through BNDES Exim Post-shipment, with disbursements made in Brazil’s local currency in favor of Embraer. SkyWest (importer) will assume the commitment to pay in dollars to BNDES, generating foreign currency for Brazil.

Brazilian BNDES is a key instrument for Embraer: it has helped finance sales globally, securing orders for continental and transcontinental customers such as Argentina’s Austral Lineas Aéreas, which acquired 24 E190 in April 2010.

The Embraer E175 is a well-known workhorse of the US regional market: limited by the Scope Clause, the E175’s maximum take-off weight and seating configuration makes it the perfect aircraft to serve as a feeder for larger carriers, surpassing the original E170 design. As the latest Scope Clause negotiations have not changed limits, the Brazilian manufacturer suspended the development of its natural successor, the E175-E2. Although is considered a three-year pause, it is unlikely that the variant will ever get to production, as the new generation aircraft will soon take over the construction lines.

A customer of BNDES since 1998, and of Embraer since 1986, SkyWest operates the world’s largest fleet of the E175 jet consisting of 232 E175 aircraft. BNDES, since 1998, has provided ten different financing facilities to SkyWest covering up to two hundred aircraft, comprised of eighteen delivered EMB120 aircraft, 175 delivered E175 and 7 to be delivered E175 aircraft.

This is the second financing tranche with BNDES for the sale of Embraer aircraft exports to SkyWest Airlines using the innovative Aircraft Financing Insurance Consortium (AFIC) offering from Marsh, the world’s leading insurance broker and risk advisor. The first financing was executed in December 2020 in amount of R$ 400 million, or US 77 million.

 

This story was published originally in Aviacionline.

Author

  • Aviacionline

    Born in Argentina, with a regional focus and global reach, Aviacionline is the Spanish-speaking leader in Latin America.

Related Stories

STARLUX receives its first A350-900

At the Airbus headquarters in Toulouse, France, STARLUX Airlines (SJX) received its first A350-900 today. The delivery ceremony was presided…

IAG Confirms Order for Boeing 737s and Options for Additional Aircraft

Shareholders of the International Airlines Group (IAG) have approved the consortium’s order for 50 Boeing 737 aircraft announced in May.…

Air Canada Doubles Down on the Airbus A220 and Orders Fifteen Additional Aircraft

Air Canada will add another 15 Airbus A220s, bringing the total number of Airbus A220 aircraft it will complete in…